Oh give me a fucking break! Since when did PIMCO not realize the risk in MBS?! I’m sorry for the vulgarity – but please don’t waste the court’s time trying to convince a judge that has over extended his retirement funds buying your ridiculous stocks by telling him you, PIMCO, are shocked… How stupid do you think judges really are?
Originally posted on Justice League:
Pacific Investment Management Co and other investors have sued Citigroup Inc over the bank’s alleged failure to properly monitor toxic securities backed by more than $13.8 billion of mortgage loans, resulting in $2.3 billion of losses.
According to a complaint filed Tuesday night in a New York state court in Manhattan, Citigroup breached its duties as trustee for the 25 private-label trusts dating from 2004 to 2007 by ignoring “pervasive and systemic deficiencies” in how the underlying loans were underwritten or being serviced.
The investors said Citigroup looked askance at the loans’ “abysmal performance” out of fear it might “jeopardize its close business relationships” with loan servicers including Wells Fargo & Co and JPMorgan Chase & Co, or prompt them to retaliate over its own problem loans.
Read more at Reutershttp://www.reuters.com/article/2015/11/25/us-citigroup-pimco-lawsuit-idUSKBN0TE2MC20151125#Bk9vqKEToqdG55gP.99